ISLAMABAD – The federal government continued its swift progression of vital legislation within the National Assembly. A bill was successfully passed to establish a new authority aimed at countering money laundering and the financing of terrorism.
The bill, which was introduced by Hina Rabbani Khar, the State Minister for Foreign Affairs, outlines the creation of the National Anti-Money Laundering and Counter Financing of Terrorism Authority in Pakistan.
The bill was discussed by the house without the usual referral to the relevant standing committee after rules were suspended.
Hina Rabbani Khar expressed optimism that the proposed authority would shield Pakistan from potential punitive measures by the Financial Action Task Force (FATF), an international organization monitoring money laundering and terrorism financing.
National Assembly passes the Bill to establish the National Anti-Money Laundering and Counter Financing of Terrorism Authority in Pakistan [The National Anti-Money Laundering and Counter Financing of Terrorism Authority Bill, 2023].
Earlier, during the bill’s introduction, Hon.… pic.twitter.com/rl7uY6Ht16
— National Assembly ???????? (@NAofPakistan) August 3, 2023
The proposed authority, as detailed in the draft, would be led by a chairman and comprised various officials including federal secretaries for finance, foreign affairs, and interior; the governor of the State Bank of Pakistan; chairs of the Securities and Exchange Commission of Pakistan, the National Accountability Bureau, and the Federal Board of Revenue; directors general of the Federal Investigation Agency, Anti-Narcotics Force, and Financial Monitoring Unit; the national coordinator of the National Counter Terrorism Authority (Nacta); as well as chief secretaries from all provinces, Azad Kashmir, and Gilgit-Baltistan.
Many of these officials were also part of Nacta, established in 2008. The purpose of Nacta was to enhance coordination in counter-terrorism efforts; however, it remained largely inactive for years due to member unavailability.
According to the new legislation, the proposed authority can convene meetings either upon the chairman’s request or if half of its members demand it.
Hina Rabbani Khar clarified that the new entity would institutionalize actions against money laundering and terrorism financing, both critical criteria stipulated by the FATF.
The already functioning Nacta and the government’s Financial Monitoring Unit will be absorbed under the new authority’s umbrella.
